Organisational groupings Flashcards
Describe functional grouping
Departments are grouped based on similar skills expertise and resources used
Describe the advantages of functional groupings
Organisation has a clear structure
staff expertise is contained in one department which encourages specialisation
staff can help each other with problems
easy to identify answers to problems and who performs particular activities
Describe the disadvantages of functional groupings
Difficult structure to manage as organisation expands
slow ar responding to change
department objectives become more important than organisation strategic objectives
department rivalry
communication betweem departments is poor
Describe place grouping
When an organisation organises its activties and resources by geographical location
Describe the advantages of place groupings
Can meet the needs of customers in different countries exactly- in terms of language
can become familiar with local customs and cultures
Describe the disadvantages of place groupings
Expensive to produce products in different languages- packaging anf ads
communication can be difficult between branches
expensive to staf- ;imguists
duplication of administration activities
Describe customer grouping
When an organisation organises its activties and resources by different types of customers
Describe the advantages of customer groupings
Customer loyalty due to the high personal service the receive
highly responsive to the needs of the customer
each type of customer receives its own service price and promotion suited to their needs
Describe the disadvantages of customer groupings
very expensive staffing costs
if a new group of customers exist a whole new group of staff have to be employed and trained
duplication of marketing activties and admin activties
Describe product/ service grouping
When the activities of the organisation are divided according to the different product and services which are produced
Describe the advantages of produce/ service groupings
Increased responsiveness to change
staff become experts on the product/ service
staff can eaisly see the results of their efforts- increased motivation
allows management to identify poorly performed products/services
Describe the disadvantages of product/service groupings
Competition between porducts and services
duplication of equipment and staffing
Describe technology grouping
Organisation group their activities according to the technological processes involved in providing the good or the service
Describe the advantages of technological groupings
Highly suitable for large organisations with different production processes
specialisation within the workforce
training is given in only one area
easy to pinpoint problems in production
Describe the disadvantages of technological groupings
Duplication fo resources in each production process
departments compete aginst each other
department aims more important than organisation aims
Describe organisational culture
a set of attitudes, beliefs, and norms to which most employees subscribe to enable the organisation to achieve its aims
the way things are done in an organisation
sometimes referred to corporate culture
culture starts when a business is first formed
management styles often help create a culture
Examples of organisational culture
delegation, team working, decision making
centralised
Examples of corporate culture
employee of the month
training courses
company magazines
company events
staff uniforms
layout of premises
policies and procedures
decor
customer services
Advantages of corporate culture
employee feels part of the organisation
increased staff motivation because employees dont want to let the team down
improved employee loyalty
improved relationship between staff
increased productivity
increased recognition due to use of logos and uniforms
